Nigeria may lose at least N549 billion ($2.8 billion) in oil royalty and petroleum tax in what appears an absurd deal involving Mohammed Adoke, the attorney-general of the federation and minister of justice.
Investigation by a wire report alleged that Adoke was negotiating a deal with the Nigerian subsidiary of Chinese-owned Addax Petroleum that could deny Nigeria about N549 billion.
The report alleged that the deal was reminiscent of the infamous Malabu Oil scandal in which Adoke was also named.
It was gathered that the attorney-general was working to reach an out-of-court settlement in a law suit over a 15-year alleged miscalculation of oil royalty obligations and taxes worth $1.7billion and at least $1billion, respectively, between Addax (plaintiff) on one hand and the Nigerian National Petroleum Corporation, (NNPC), Ministry of Petroleum Resources (Department of Petroleum Resources (DPR), Federal Inland Revenue Service (FIRS) and the Attorney-General of the Federation (defendants) on the other.
Addax had approached a Federal High Court in Abuja in 2014 to stop the payment of the disputed unpaid royalty stemming from its alleged miscalculation of oil royalty requested by the DPR.
The company is also challenging the NNPC for over-lifting crude from its Production Sharing Contract (PSC) of OMLs 123, 124, 126 and 137 to cover for the alleged miscalculation.
A source, who claimed to be in the know of the matter, told our reporters that Adoke was mounting pressure on lawyers and other officials working on the case to discontinue the lawsuit for a negotiated settlement that is unfavourable to the interest of the country and may cost the government about N549billion.
According to the source, lawyers working on the case are now said to be distraught that Adoke could not send any legal representation despite being named a defendant in the suit.
“Adoke did not make a representation, did not file his submission; did not show any interest in the case whatsoever,” one of our sources said. “The only time he showed interest was when the Federal Government asked for his opinion as the chief law officer of the government,” it was further gathered.
“There seems to be a rush to tidy this deal before the elections. Pressures are on the lawyers to sit on the table and knock out this deal with Addax,” another source added.
The intrigue involved in the case is also deepened by the fact that Addax is represented by Adetokunbo Kayode, a former minister of Labour, who briefly held the office of the AGF before Adoke’s appointment.
If this new deal sails through, it would be the second time in four years Adoke would allegedly preside over oil deals that have cost Nigeria several millions of dollars.
Charles Nwodo, spokesperson of the Ministry of Justice, who responded to an email message sent to him on the development, by the wire report, said the enquiry was passed to the appropriate quarters; but no response came from the ministry for days.
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